KUALA LUMPUR (Jan 6): Citaglobal Bhd (KL:CITAGLB) has acquired a 55% equity stake in Germany’s LAWI Engineering GmbH (LAWI Germany), as part of a partnership to provide advanced waste-to-energy (WTE) technology and engineering solutions for waste management projects.
The acquisition, fully paid on Jan 3, 2025, involves the subscription to 31,778 new ordinary shares in LAWI Germany via Citaglobal's wholly owned subsidiary, Citaglobal Environment Management Sdn Bhd (CGEM). However, the value of the investment was not disclosed.
Following the stake acquisition, LAWI Germany will operate as a 55%-owned subsidiary of CGEM. Dieter Langer, the sole shareholder and director of LAWI Germany prior to the investment, retains the remaining 45% equity stake.
"With the proposed investment, the group is able to offer end-to-end solutions, equipment supply, engineering and design for waste and bioenergy projects globally, without relying on importation of technology from foreign companies. The group also plans to export the technology outside Malaysia," Citaglobal said in a filing with Bursa Malaysia on Monday.
The investment follows a binding term sheet, signed between Citaglobal, LAWI Germany and Langer on Sept 27, 2024, for exclusive discussion and negotiation on the proposed exclusive collaboration on waste management projects.
Citaglobal said the move is a "spin-off" from the collaboration with Shanghai SUS Environment Co Ltd, which is focused on developing WTE projects in Pahang. These projects aim to convert municipal waste into electricity, providing renewable energy solutions and contributing to environmental sustainability.
Established in Germany in 1996, LAWI Germany is a technology and engineering company specialising in the design and construction of high-efficiency systems for the thermal utilisation of solid waste.
Shares in Citaglobal were down half a sen or 0.57% to close at 87.5 sen on Monday, valuing the company at RM372.29 million.